India Seeks Seven-Year Low Fiscal Deficit Amid Election Sops

India’s government pledged to reduce the fiscal gap to the lowest in seven years in an interim budget before elections due by May, while boosting defense spending and cutting taxes on cars, mobile phones and television sets.

The budget deficit will narrow to 4.1 percent of gross domestic product by March 31, 2015 from an estimated 4.6 percent in the current fiscal year, which is lower than an earlier target of 4.8 percent, Finance Minister Palaniappan Chidambaram told lawmakers today in New Delhi. The budget would provide funds for several months until a new parliament is elected.